New report: Macy’s to start closing stores before 2017

Some of the 100 Macy’s locations that were scheduled to close before early 2017 will be shutting down even earlier than expected, according to the Cincinnati Business Courier.

In August, Macy’s revealed that it would close 100 of its 728 stores in order to concentrate on better-performing locations to “elevate their status as preferred shopping destinations.” Now comes word that many of those stores will be closed before the end of the year, likely locations under Macy’s control – not ones with leases.

Even though Macy’s has not released a full list of the 100 stores, the retailer has confirmed some of the locations that will shut down.

In a news release, Macy’s said it sold five stores to mall operator General Growth Properties. One of the impacted locations has already closed, three of them will close in early 2017 and the other store will continue to operate on a lease.

Carolina Place in Pineville, N.C. — Closing in 2017

Oakwood Mall in Eau Claire, Wis. — Closing in 2017

Greenwood Mall in Bowling Green, Ky. — Closing in 2017

Quail Springs Mall in Oklahoma City, Okla. — Already closed

Tysons Galleria in McLean, Va. — Will continue to operate

In a separate transaction, Macy’s has confirmed that it will sell its location in downtown Portland, Oregon. It will be closed in spring 2017.

Around the same time, Macy’s will close stores in Douglaston, New York and Salem, Oregon.

Meanwhile, Macy’s said it plans to sell its Union Square Men’s building in San Francisco, consolidating the store into its main Union Square location.

Here’s what Macy’s President Jeff Gennette said about the impacted stores:

“Nearly all of the stores to be closed are cash flow positive today, but their volume and profitability in most cases have been declining steadily in recent years. We recognize that these locations do not yield an adequate return on investment and often do not represent a customer shopping experience that reflects our aspirations for the Macy’s brand. We decided to close a larger number of stores proactively so we can invest in a winning customer experience in our most productive and highest-potential locations, as well as invest in growth sooner and more aggressively in digital and mobile.”

Besides the stores listed above, Macy’s hasn’t revealed which locations will close and won’t make an announcement until January. However, Morningstar Credit Ratings has identified 28 stores that are the most vulnerable.